Advent International buys innerwear company Dixcy textiles

By

Maverick Martins

Published
Jul 28, 2017

Advent International, the leading US-based private equity investor has bought majority stake in Dixcy Textiles Pvt Ltd, the South Indian firm which owns India’s leading innerwear brand Dixcy Scott.
 

Dixcy’s founder and managing director Prem Prakash Sikka will retain a minority stake in the company and continue as the chairman following the completion of the transaction, the company said in a statement.
 
“We look forward to working with Advent to further expand the business, following a twin-pronged strategy involving organic growth from the existing offerings and expanding internationally to newer geographies,” said Raghul Sikka, director of Dixcy.

Dixcy generated sales of Rs780 crore ($120 million) in fiscal year 2017 and advent see significant opportunities for that figure to grow in order to monetize on this investment in India’s fast-growing innerwear market.
 
“The innerwear market in India is expected to grow at double-digit rates over the next five years, driven by increased per capita spending and consumer demand for higher quality products,” said Shweta Jalan, managing director and head of India for Advent International. We see significant opportunities to create value by investing in distribution, sales and product innovation, and improving procurement and production efficiency, Jalan added.
 
Tirupur-based Dixcy currently endorsed by Bollywood superstar Salman Khan is the exclusive manufacturer and marketer of several leading innerwear brands, including Dixcy Scott, Dixcy Scott UNO, Dixcy Josh and Dixcy & Slimz. The company also sells a premium range of products including casual wear such as track pants, shorts and polo t-shirts.